Relationship Between Product And Corporate Advertising

Corporate advertising can be defined as the paid use of media that seeks to benefit the image of the corporation as a whole rather than its product or services alone. Because all of a company’s advertising contributes to its reputation, both product and corporate advertising should reflect a unified strategy. Corporate image advertising should “brand” a company the way product advertising brands a product. A major difference between corporate and product advertising is who pays for each of the two types of advertising. A company’s marketing department typically is responsible for all product-related advertising and pays for such ads of its own budget. Costs are usually associated with a specific product or service. Corporate advertising, on …show more content…
The bigger the company, the more likely it is to have a corporate advertising program. Because large corporations tend to have more discretionary income, this correlation makes sense. In additional, larger companies tend to be more diversified and thus have a greater need to establish a coherent identity for a variety of activities, products and services. Corporate advertising is also used heavily by companies belong to more “controversial” industries such as cigarette companies, oil companies, drug companies, and other large industrial companies which all have image problems to deal with, from concern about health to drug and also environment. Overall, heavy industry spends more on corporate advertising than consumer packaged-goods firms, which lead all other industries in product advertising. This may be related to the presence in consumer product companies of a strong marketing focus that concentrates more than the 4Ps (product, price, promotion, place) than on developing a strong corporate image. Recently, US government and public are more focus on the nutritional content of fast foods and snacks foods is already leading to more corporate advertising from companies, for examples Pepsi and McDonalds that are looking to show their companies in a more positive and healthy …show more content…
This mistake is partly contribute to lack of understanding about corporate image, identity and reputation are all about and what they do for the organization. As the example above, GE had portrayed them through corporate advertising which strengthen their identity and reputation as a company in the eyes of public. The decision to run a campaign should be based on the company’s communication strategy. Whether the company is changing its image or having negative perceptions in the marketplace, or continuing to survive in the business thus strengthens its identity, corporate advertising can be a tool and useful platform in positioning the right way for the organization in the future success. Despite the type of strategy, an organization should understand its base identity that represent the reality and image held by the organization, thus strong reputation build. A success for a company will lead to commitment toward the communities such as employees, consumers and public. (By doing CSR). These become values that can ensure competitive in global business